The business judgment rule

a. holds directors liable for corporate losses due to poor decision making.

b. holds managers liable for poor performance in the function of their duties.

c. makes directors immune from liability if there is a reasonable basis for their decisions.

d. makes directors immune from liability if their good faith actions turn a profit for the corporation.

A voluntary termination of a corporation's existence is typically accomplished

a. with the sole approval of the board of directors alone.

b. by a vote of the directors, officers and shareholders.

c. by a vote of the shareholders and directors.

d. when the state dissolves it or through bankruptcy.

Which of the following is not a basis for piercing the corporate veil?

a. Corporate formalities are not observed.

b. The officers pay corporate debts and bills with personal checks when the corporation is running low on cash.

c. The corporation is undercapitalized at its start up.

d. The corporation defaults on a loan business loan.